My Investment Strategy for 2022
Here's how I am going to allocate my income during this year, my price targets and the Defi Protocols I use to earn more yields.
In this post I want to tell you about my investment strategy for this year.
I’ll soon put out the reasons why I decide to invest in Crypto so heavily in a deep Crypto Thesis that I am working on.
But for now I wanted to share with you my plan for this year.
BLUE-FAMA Strategy
I came out with that acronym just because I think it’s cool and easy to remember.
For every source of income I earn, I will invest in the following 8 cryptos:
Bitcoin: 20%
Luna: 6%
UST: 18%
Ethereum: 40%
Fantom: 4%
Atom: 4%
Matic: 4%
Avax: 4%
Price Targets
I have NO price targets for ETH and BTC. As I usually say…
LUNA: $900
FANTOM: $7
ATOM: $80
MATIC: $10
AVAX: $240
So, when I hit my price targets, I will convert these into ETH and BTC at a 70:30 ratio. 70% ETH, 30% BTC.
Why UST?
The 18% in UST (US Terra) is there for two things.
First, to take advantage of big dips in the market an. I have made the mistake before of not having enough liquidity.
Never again.
What do I consider a dip? A 65% down from ATH.
What will I buy during dips? Only Ethereum and Bitcoin. Not other alts.
How will I buy during dips? DCA with Limit Orders.
Second, to buy into another project that is not in the BLUE FAMA and might arise later. I am particularly interested in P2E Games and the Metevarse, but haven’t made any huge investment decisions yet (I hold some $NAKA, a P2E ecosystem which is really fun).
Of course, I will not just hold the UST. I will put them into WhiteWhale to earn that +20% APY. WhiteWhale is a platform that gives you the Anchor earn rate + arbitrage earnings (I’ve made a full review of them here).
Extra Yields: Which Defi protocols I’ll use
In order to get some extra yields, I am using some Defi protocols. Here’s how I will use them and my strategy.
Eth and Luna
Deposit as collateral (bEth and bLuna) in Anchor protocol.
I’ll Borrow UST at 20% of maximum borrow limit. Anchor is currently PAYING you to borrow money.
Deposit that UST in WhiteWhale.
If the market goes bearish, and my borrow limit is past 45%, I’ll just remove the UST and repay some debt to go back to 20%.
Matic and BTC
Deposit WMATIC and WBTC into QiDao vaults
Borrow 20% of collateral value in MAI (Stablecoin). QiDao, as Anchor, is also paying you to borrow MAI in their token QI
Lock earned QI.
With the MAI borrowed, I will deposit them into a stable coin pool in Balancer to earn more rewards. The same concept as before applies here: if market goes bearish, I’ll remove some stablecoins from the pool and repay debt.
FTM
Buy half FTM and half TOMB (pegged to FTM)
Deposit into the FTM-TOMB Liquidity pool to earn 200% APY at the moment. I use BeeFy.
ATOM
I’ll just take Atom in my Keplr wallet for a 16% APY.
AVAX.
I’ll deposit in BeeFy for 9% APY.
Further comments
This is crypto. Everything can change in an instant.
So, although I am going to try to stick with my plan, I will also try to stay open minded and not too caught by my own cognitive biases.
If I notice something changes in the fundamentals of my investments, or if I see a great opportunity, of course I’ll chase it.
I hope I am not so wrong about my portfolio.
WAGMI
JUAN PABLO ARANOVICH
Disclaimer: this was NOT financial advise.
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